Virginia Democrat calls ‘bull——’ on proposed rule banning stock trades for members of Congress

Two Virginia Democratic lawmakers in battleground districts are on opposite sides of a contentious issue about whether members of Congress should be banned from trading stocks.

The decade-old STOCK Act mandates that lawmakers disclose stock trades within 45 days, but Rep. Abigail Spanberger, Virginia Democrat, says this system is a failure and her legislation, co-sponsored with Rep. Chip Roy, Texas Republican, would “increase transparency and reduce opportunities for nefarious activity” when it came to their stock trades.

However, the proposed legislation drew howls fellow Virginia Democrat Rep. Elaine Luria.

When asked by a Punchbowl reporter about the legislation, Ms. Luria called it “bull——.”

“Why would you assume that members of Congress are going to be inherently bad or corrupt? We already have the STOCK Act that requires people to report stock trades,” she said.

“Why would you assume — I mean, the people that you’re electing to represent you, it makes no sense that you’re going to automatically assume that they’re going to use their position for some nefarious means or to benefit themselves. So I’m very strongly opposed to any legislation like that.”

Mrs. Luria noted that she and Mrs. Spanberger have talked about the issue and are “great friends together in Virginia, but it was an issue where we differ.”

Still, top Democrats hinted that Congress may soon advance bipartisan legislation to prohibit lawmakers from trading individual stocks. The idea comes at a time when members from both sides of the aisle say that their constituents support the concept.

Nancy Pelosi, California Democrat, does not trade individual stocks, her husband does. Mrs. Pelosi previously did not support the ban but said on Wednesday she was open to discussing changes to the current STOCK Act.

“It is a confidence issue and if that’s what members want to do then that’s what we will do,” Mrs. Pelosi said, noting that House committees were drafting a proposal and a bill that could go forward “pretty soon.”

Mrs. Spanberger, who is in a tough reelection run this year, tweeted on Thursday, “We must remove the opportunity for Members of Congress to profit off insider information.”

She thanked California Democrat Mark Takano, South Dakota Republican Dusty Johnson, Florida Republican Bill Posey, Virginia Democrat Jennifer Wexton and New York Democrat Paul Tonko for joining her “TRUST in Congress Act to ban lawmakers from trading individual stocks in office.”

Mrs. Spanberger’s Transparent Representation Upholding Service and Trust (TRUST) in Congress Act would require members of Congress, their spouses and dependent children to place certain investment assets into a qualified blind trust during their entire tenure in Congress.

“By establishing this new firewall between members and their investments, the TRUST in Congress Act would make sure members of Congress cannot use their positions in the U.S. House or U.S. Senate to unethically inform investment decisions or influence the value of their existing investments,” Mrs. Spanberger said.

Rep. Cindy Axne of Iowa, another Democrat facing a tough reelection cycle, also takes issue with a potential stock trade ban.

The Campaign Legal Center, a nonprofit ethics organization, filed complaints last against seven House lawmakers, including Mrs. Axne. According to the complaint, the Iowa Democrat bought and sold over 40 assets, ranging from $43,000 to $645,000 over the last two years, without disclosing the transaction reports required by the STOCK Act.

“If there are errors with those disclosures, they are unintentional and the Congresswoman will take immediate and all necessary steps to ensure her disclosures are accurate and in accordance with the law,” an Axne spokesperson said in a statement to outlets. “While Congresswoman Axne completes her own financial disclosures, she does not personally manage or execute transactions related to her retirement account or the ones she has with her husband or her small business.”

Mrs. Axne updated and amended her stock disclosures in October.